Assessment 3 Information
Subject Code: ACC303
Subject Name: Company Accounting
Assessment Title: Assessment 3
Assessment Type: Case Study
Word Count: 1,500 Words (+/-10%)
Weighting: 30 %
Total Marks: 30
Submission: Via Turnitin-written report
Due Date: Monday of Week 13 at 7:55 pm (AEST)
Your Task
You are required to prepare a letter to answer the questions raised by the CEO.
Assessment Description
Assume that you are a team of graduate accountants working for HGS Group Ltd, an independent consulting & accounting firm situated at 111 George Avenue, Melbourne, VIC 3000. The Manager of your firm, Mr David Miller, has asked you to draft a letter in response to an email received from Ms Linda Jackson, the General Manager of TRD Group (a large private entity), raising accounting issues – see the copy of the email on the next page.
The maximum length for the body of the letter is 1,500 words. You should address all the technical issues/discussion in the letter, followed by a Reference List.
• Part A: Technical component 24% - This mark covers the technical content of your advice and the explanation on each of the issues, the calculations (if any), and the sources used.
• Part B: Communication Skills 6% - This mark covers the generic skills of letter writing; layout, clear meaning, structure and organisation, appropriate tone and grammar, spelling, and punctuation, etc., throughout the whole assignment.
Re: Accounting Issues: Year Ending 30 June 2021
From: Linda Jackson
Sent: 20 July 2021
To: David Miller
Dear David
Thank you for your time this morning.
As discussed, I am reaching out to you to discuss the following issues which came up in the most recent board meeting. Jerry (our outgoing CFO) wasn’t around to answer any of these questions, and therefore it was difficult for me to give an accurate response since I don’t have an accounting background.
Most of the board members, including myself, are very confused about the purpose of consolidation entries. Our accountant tells me that we must delete certain accounting transactions before consolidated accounts are prepared. If this is true, I am absolutely baffled as to why we are deleting transactions from our records. And more importantly, why are we wasting money recording these transactions in the first place. As I said, I am not an accountant, and therefore I would appreciate if you could provide a couple of simple examples to support your views on this issue.
Our company is currently reviewing several proposals whereby we are considering investing in other companies. For example, one proposal is to buy 20% of a QLD-based company (a private company). And there is another proposal where we already own 35% of a WA based company, and we are considering buying another 35%. Would you be able to please shed some light on how to account for these investments in our accounting records?
The last issue is something which the external auditors raised to our audit committee. The auditors spoke to Jerry just before he left the company and were concerned about Jerry’s lack of knowledge around accounting for goodwill. Apparently, Jerry told the auditors that goodwill is the value associated with the business name, and therefore the value is decided by the board. He stated that if a business is very well known with the community, then the company can recognise goodwill in its books – after consulting with some business valuation experts. Could you please clarify this goodwill issue for me? What is goodwill, and when it should be recognised? How do we use this goodwill? Should we just depreciate it?
Would you mind responding by letter (not email) as I would like to present your views to our board? I look forward to hearing from you shortly.
Regards
Linda Jackson
380 Jackson Drive, Adelaide SA 5000.
Assessment Instructions
• The assignment will need to be submitted electronically through the student portal –
use the link under “Assessments”.
Referencing
• Any sources that you use need to be acknowledged in order to avoid plagiarism. Information on referencing can be found in the Guidelines for Referencing and Presentation at the Kaplan website using the following address: (https://elearning.kbs.edu.au/mod/page/view.php?id=128881).
In-Text Referencing and the Reference List
• Sources of information must be cited both in the body of the text (in-text referencing) and the end of the assignment (reference list). Failure to do so will result in penalties. Remember that when referencing an Annual Report, it is a corporate document that does not have a particular author but it will still require referencing any time you use information from it. Any other documents or books or other references you use will also require referencing.
Please note
• Any work which has been copied or shared between students will result in a Fail grade for all students concerned. Therefore, please make sure that the answer to this assignment is your work and not copied or bought from any source. In completing this assignment make sure you follow the guidelines for assignments especially those relating to the presentation of written work, late assignment policy and academic integrity.
Important Study Information
Academic Integrity Policy
KBS values academic integrity. All students must understand the meaning and consequences of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct Policy.
What is academic integrity and misconduct?
What are the penalties for academic misconduct?
What are the late penalties?
How can I appeal my grade?
Click here for answers to these questions:
http://www.kbs.edu.au/current-students/student-policies/.
Word Limits for Written Assessments
Submissions that exceed the word limit by more than 10% will cease to be marked from the point at which that limit is exceeded.
Study Assistance
Students may seek study assistance from their local Academic Learning Advisor or refer to the resources on the MyKBS Academic Success Centre page. Click here for this information.
Assessment Marking Guide
Assessment Part A - Assignment Rubrics: 24% Technical Content
Components High Distinction 85 – 100% Distinction 75 - 84% Credit 65 – 74% Pass 50 – 64% Fails
0 – 49% Mark Awarded
Letter
Segment
-
Technical content Letter clearly identifies and addresses all the technical issues raised by the client, and provides clear, correct and decisive advice Letter clearly identifies and addresses most of the technical issues raised by the client and provides clear, correct and decisive advice Letter clearly identifies and addresses some of the technical issues raised by the client and
provides reasonably clear, Letter identifies and addresses some of the technical issues raised by the client and provides fairly clear, but not always Letter does not identify or address the technical issues raised by the client It displays a lack of understanding of
displaying an displaying a good correct and decisive correct and/or some or most of the
outstanding understanding of most advice displaying a decisive advice. It technical issues
understanding of each of the technical issues reasonably good displays a reasonable raised making it
of the technical issues raised so that it is easy understanding of understanding of difficult for the client
raised, so that it is for the client (non- some of the technical some of the technical to understand.
easy for the client accountants) to issues raised, so that issues raised It does not give
(non-accountants) to understand. it is relatively easy for Reference has been correct clear and/or
understand Reference has been the client to made (with gaps) to decisive advice on
Reference has been correctly made to the understand. some of the AASBs, most of the issues
correctly made to the AASBs, GAAPs and Reference has been GAAPs and other raised and makes
AASBs, GAAPs and other legislation where made (with gaps) to legislation where little or no reference
other legislation where applicable and some of the AASBs, applicable and/or to the AASBs,
applicable and appropriate. GAAPs and other appropriate GAAPs and other
appropriate. legislation where legislation where
applicable applicable
Total Technical Component /24
Assessment Part B - Assignment Rubrics: 6% Communication Skills – Letter Writing Skills
Components High Distinction 85 – 100% Distinction 75 - 84% Credit 65 – 74% Pass 50 – 64% Fails
0 – 49% Mark Awarded
Language and Assignment Assignment Assignment Assignment Assignment does
presentation Structure of sentences and Paragraphs:
Vocabulary
Spelling
Presentation
Referencing
Tone
Plagiarism demonstrates flawless language and presentation
demonstrates high levels of language and presentation
demonstrates good level of language and presentation
demonstrates acceptable level of language and presentation
not meet the standards of language and presentation
/ 3
Letter Letter structure and Letter structure and Letter structure and Letter structure and Letter structure and
Structure
Format
format effective and professional.
format effective and professional with minor exceptions.
format effective and professional with some exceptions.
format contain errors which affect readability and presentation.
format contain significant errors and omissions which render it unprofessional. / 3
Comments on communication skills:
Total Communication Skills Componen
t / 6